Full text of H.16 Capital Market Developments : October 18, 1965

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DECONTROLLED AFTER SIX MONTHS
Not for ]Publication

October 18, 1965

H.14
.CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES
Corporate and municipal bond markets. Public offerings
of corporate securities are expected to be small again this week,
with a $40 million debenture offering of Panhandle Eastern Pipeline Company accounting for more than half of the total. In sharp
contrast, the supply of new municipal bonds--which has been below
average in each of the last three weeks--will reach its heaviest
weekly volume since the mid-Fifties. Individual issues of $105
and $85 million of New York City and New York State, respectively,
are the largest on the schedule.

Corporate
New Capital I Refunding

State and local Government
New Capital I
1 Refunding

Sold:
52 week avg.

110

Oct. 8
Oct. 15

136 r/
50

3

185

15

197 r/
72

--

2 r/

Scheduled:
Oct. 22

70

495

--

1/ Federal Reserve estimates based upon published reports of
issues sold and scheduled for offering; corporate rights
offerings are included as of the date subscription rights expire.
Underwriters experienced little difficulty in distributing
last week's only large corporate bond issue--a $30 million bank
holding company offering which reached the market via negotiation.
At the same time, yields firmed as underwriters succeeded in
reducing their already light inventories of unsold, recentlyissued bonds.
In the municipal market, the light supply of new issues,
for the third week in succession, enabled dealers to reduce their
inventories of unsold securities to their lowest level since
early January. Some of this cutback can probably be attributed to
dealer acquisitions for possible future price mark-ups. Yields
on seasoned issues changed little.
Mortgage yields and conventional mortgage terms. Home
mortgage markets in September showed a few more signs of a less
easy tone. Secondary market yields on FHA-insured 30-year mortgages
at 5.46 per cent, edged up for the second consecutive month, but
remained within the 5.44-5.46 range held since early 1963.




H. 14
Yields in Securities Markets
Level latest week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.57

U.S. Govt.
Long-term
3-5 year

4.26
4.30

State & local Govt.
Moody's Aaa
Standard and Poor's
high &rade
Money Market
Federal funds
Treasury bills
3-month
6-month

Change from
preceding week
(basis points)

-1
-1

3.31
3.41

4.13

+5

4.01
4.18

+1
+1

Corporate Bonds Still in Syndicate
Date
Offered
9/30

Amount
(millions of $)
10.0

Reoffering
Issue
yield
Sierra Pacific Power Co.
4.94
5's - 1995
Blue List of Municipal Dealer's Advertised Inventories
(millions of dollars)

Latest Date
562 (10/14)

End of Previous Week
636

Rating
Baa

Estimated
Proportion
Sold
,
1/2
I

Recent High
901 (6/4)

Contract interest rates for conventional first mortgages
on new homes in September, however, were unchanged at their earlier
reduced average level of 5.80 per cent, according to Federal Housing
Administration opinion reports which are rounded to the nearest
five basis points. Comparable rates on loans for existing home
purchase held at the higher 5.90 per cent level attained in August.
The yield spread favoring mortgages narrowed slightly
further in September, since rates on corporate bonds showed more
upward movement than mortgage rates.
In August, average loan amounts, loan-to-price ratios,
and maturities on first mortgages on both new and existing homes
were all slightly less liberal than in July, as shown in Exhibit F
Part IV. But contract interest rates remained little changed, while
average fees and charges were a bit lower, according to the FHLBBFDIC series.




H. 14

-3-

Stock market credit. Total customers' credit in the stock
market rose $162 million during September. Most of this gain was
attributable to an increase of $108 million in customers' debit
balances (except on U.S. Government securities). And practically
all of this increase can be accounted for by debits arising from
the lag in clearing of transactions during the last week of
September when trading volume ballooned to over 8.0 million shares
a day. Moreover, data on debits in margin accounts for a sample of
margin customers (collected monthly by the New York Stock Exchange
from selected member firms) indicated no increase in debit balances
in margin accounts. Bank loans to others than brokers and dealers
rose $54 million.
Borrowings of member firms of the New York Stock Exchange
on customers' collateral, on the other hand, fell $130 million in
September. Customers' free credit balances jumped $176 million.
More detailed information on changes in stock market credit in
recent months are shown in the table on the following page.
Stock prices. Standard and Poor's index of 500 stocks
rose on balance last week to close at a new all-time high of
91.38 on October 15. Trading volume averaged 8.9 million shares
a day, the largest weekly average since early June 1962.
More detailed information concerning recent capital
market developments is presented in the attached exhibits.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




H. 14

STOCK MARKET CREDIT
(In millions of dollars)

Months

Total

Broker & Dealer Credit
Customer Credit
Customers 1
Bank loans to others Money
Net debit
borrowed
net free
than brokers and
balances with
credit
dealers for purchas- Gust, Other
NYSE member
coll.
coll.
balances
ing & carrying secur.
firms

Outstanding:
1955-56 High

4,047(5/56)

2,823(12/56)

1,255(4/56)

1,873

430

1,069(1/55)

1957-58 Low

3,554(1/58)

2,482(12/57)

1,060(11/57)

1,344

188

807(4/57)

1959
1960
1961
1962
1963

4,764(4)
4,142(5)
5,602(12)
4,876(7)
7,298(11)

3,401(4)
3,004(7)
4,259(12)
3,562(7)
5,586(11)

1,373(5)
1,121(5)
1,377(8)
1,269(9)
1,727(12)

2,044
1,801
2,572
1,856
3,892

318
237
385
235
597

1,257(3)
940(4)
1,508(4)
1,091(9)
1,211(11)

7,242
7,053
7,036

5,515
5,074
4.99-

1,727

3,852
3,'.93
2,978

597
517
544

1,210
1,169
1,369

46
-41
7
-55
-113
-68
69
60

34
-36
•25
-52
- 93
21
48
11
63

12
-3
22
2c
-20
-89
21
49

-50
-40
-59
-76
-76
-58
44
23
71
-1
-29;

82
-29
-43
35
-71
43
102

-

High
Low
High
Low
High

1963 - Dec. 1/
1964 - Dec.
1965 - Sept.
Changes in
Outstanding!
1964 - Sept.
Oct.
Nov.
Dec.
Jan.
1965
Feb.
Mar.
Apr .
May
Jun-2
July
Aug.
Sept.

14
-251
41
162

'251
2)
108

:s
) <

-130

106
182
320
23
26

68
10
-24
38
38
47
10
• 57
1
89
- 64
-40
1/6

Note: With the exception of bank loan data, figure# ere reported to the tfew York Stock
Exchange by member firms carrying margin accounts. Bank loans to other# than brokers and
dealers for purchasing and carrying securities are for weekly reporting member banks. Net
debit balances and customer free credit balances are as of the end of the month; bank loans
and money borrowed are reported for the list Wednesday of the month. Numbers in parenthesis
denote month of year. All figures exclude credits on, or to carry, U.S. Govt, securities.
1/ November 1963 data on customers' net debit balances do not include accounts carried by
a large former member firm in liquidation; most of these accounts have been transferred to
other member firms and are reported in their debit figures from the month received (some in
December, more in January 1964). Debit balance totals for the period from October 1963
through January 1964, therefore, are not completely comparable.




9

Exhibit A -- Pert II

Corporate
Aaa U

U. S. Govt,
long-term 2/

State and
local
government
Aaa 3/

Spread between
U. S. Goyt. and
State and
Corporate
Aaa
local Aaa

(per cent)
1959-60 - High
1961-62
High
1962-63 - Low
1964 - High
Low
1965 - High
Low
Sept, 17
Sept. 24
Oct.
1
8
Oct.
Oct. 15 2/

4.57 (10/15)
4.41 (3/12)

4.42
4.12
3.85
4.20
4.11
4.29
4.13

4.52
4.52
4.53
4.57
4.57 ^

4.25
4.25
4.29
4.27
4.26 y

4.19(3/29/63)

1
f
(13/28/62)
(4/1
f
(10/1)
(6/25)

3.65(9/23.37*
2.88(13/8/62)
3.16(3/26)
2.99(1^/31)
3.31 (10/14)
2.94 (2/11)

.59
.57
.21
.33
.19
.34
.24

3.25
3.31
3.31
3.31
3.31 '

.27
.27
.24
.30
.31

aeries. For spreads* high refers to widest, and loir to narrowest*




.92
1.04

.80

1.14
1.01
1.22
.94

1.00
.94
.98
.96
.95

V
Weefclf

\

V

x

-

>4^U-U_U_L-LL 1 I 1 1 1 1 1 1 1 111
1 I M n J i it
l**f
1**1
1941

1 1 1 1 1 U J , J J J,.
-LLLi.LLil.il. 1 1 i 1 1 1 1 1
1*4*
1**4

Exhibit B —

Date

Corporate
Baa Xf

Part II

State and
local govt.
Baa 2 /

Sptead between
At*
Corporate

|

•££

(per cent)
1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low
Sept. 17
Sept. 24
Oct.
1
Oct.
8
Oct. 15 j>/

5.36 (t/12/60)
5.10
4.93
4.85
4.80
4.92 (10/15)
4.78 (3/19)

4.46 (3/7/60)
4.04
3.57
3.60
3.51
3.65 (10/14)
3.40 (2/11)

.84
.66
.70
.48
.37
• 41
.35

1.08
.73
.63
.49
.52
.52
.34

4.91
4.91
4.91
4.92
4.92

3.63
3.65
3.65
3.65
3.65

.39
.39
.38
.35
.35

.38
.34
.34
.34
.34

Hotel For footnotes see Exhibit 1.




Lit.

txHiarr c. m.n 1
SHORT- AND I N T I I M I D I A T B - T I K M INTIRIST S A T I S
GOVERNMENT
Weakly

r. t . D I S C O U N T • A T I

I I I I I I II II I II I I I I11III I 11 I I I II
111!

o

Sept.17
Sept. 24
Oct. 1
Oct. 8
Oct. 15 £,/

Spread between yields on 3-

3-5 year
Issues 2/

I

M R t b , . t m # « P 4 Ytel<t.l..9P ...
6-mo. bills13-5 vr. issues

4.00
3.00
3.00
3.50
4.00
4.00
4.00

4.59 ( W e o )
2.66
2.89
3.52
3.83
4.01 (10/15)
3.78 (6/25)

3.81
2.90
2.93
3.41
4.07
3.64
4.07
3.93
4.18 (10/15) 4.31 (10/8)
3.82 (6/25) 4.04 (1/22)

4.00
4.00
4.00
4.00
4.00 w

3.88
3.94
4.01
4.00
4.01^

4.04
,
4.10
4.17
4.17
4.18 V

8

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low

Yields
6 month
bills 2/
(per cent

Discount
3-month
rate
bills 2/
1/

y

Date

Part IT

i

Exhibit C —

I I I I I II I I I I

I I I I I

4.22
4.24
4.30
4,31
4.30

.79
.24
.04
.13
.10
.17
.03

1.81
1.15
.52
.55
.24
.38
.11

.16
.16
,16
,17
,17

.36
.30
.29
.31
.29

V Weekly rate shorm ie that In effect at end of period at the federal Reserve Bank of *ew York.
y Market yield) weekly average# oonjmted from daily closing bid prices. Series of 3-8 year Issues
consists of selected notes and bonds#
Vote*—aighs and lews ars for individual series and may be en different dates for different series,
for spreads, high refer* to widest, and tar to narrowest*




IXHISIT 0. Part I

SHORT- AND INTIRMIDI ATI- TIRM INT1E1ST 1AT1S,

\

j

iT
'!

. D I S C O U N T (All

nr
I

F "

\ Y'

1
j||r i |
V

Effective tele

fI
l l 1 1 1 1 1 II 11 11 1 11 1 1 I 1I i1 I 1i i i i i i i i
If*0

1**1

1»41

l l i l l l 1.1. t i l - •1-LLl 1 1 i l .t i i.11 1 1 1 1 1 1 M 11
t»4S

1**4

lt4S

Exhibit D -- Part II

Prime r a t e

1959-60 - High
Year end - 1961
1962
196.3
1964
1965 - High
S e p t . 17
S e p t . 24
Oct.
1
Oct.
8
Oct.
15j)/

1/

Finance
company
Federal funds ^/
paper
(per cent)

5.00
4.50
4.50
4.50
4.50
4.50
4.50

5 . 1 3 (1/22/60)
3.00
3.19
3.88
4.06
4.25 (10/15)
4.00 (2/12)

4 . 0 0 (5/13/60)
2.88
3.00
3.50
4.00
4.13 (10/15)
3.48 (10/1)

4.50
4.50
4.50
4.50
4.50

4.25
4.25
4.25
4.25
4.25

4.12
4.12
3.48
4.08
4.13




Spread between
3-mo. bills and
finance co. paper
1.02
.34
.30
.36
.23
.47
.10
.37
.31
.24
.25
.24

f X H I t l t I, M M 1

STOCK M A R K I T

H i l l * * * el 4 « H a r t

\ STOCK MAIKIT
CMANOI IM H l t f i
ftllllaa*

Exhibit B —

Date

1961-62 - High
Low
Year end
1963
1964
1965 - High
Low

Stock price
index y

stock
yields 2/

•( i k t d l

Part II

Trading
volume 2J
(millions
.*( i h u s i l

Stock mar Itet customer credit
Bsnk
Customers'
debit belloans to
"9tMT§"
i e f 4/
(In million# of dollars)

Total

72.04(U/e/6l)
52.68(6/2^62)

2.80
3.96

10.1
2.4

3,60*121/61) 4,259(13/61) 1,418(5/9/62)
4,424(3/61) 3,253(1/61) 1.1*1 C V W & )

74.44
84.75
91.38 (10/15)
83.06 (6/25)

3.13
3.02
2.92
3.15

4.7
4.7
8.9
3.8

7,242
7*053
7.085
6,872

5,515
5.099
5,129
4,863

1,727
1.974
2,042 (9/29)
1,848 (3/3)

4,886
1,988
6,874
5.0
3.06
86.49
Aug.
2,042
7*036
4,994 •
7.4
2.98
89.38
Sept.
n.a.
u.t«.
2,042
8.5
2.95
89.90
Oct. 1
n.a.
2,021
n.a.
6.6
2.93
90.85
Oct. 8
n.a.
n.a.
2.92
8.9
91.38
n.a.
Oct.15£/
[ Praliadaaxr.
n-se—*ot available.
VStendsPd u d Poflr'iooepoelte index of 500 ooneoa stooks. weekly oloelng prloes, 1941r43*10,
Monthly data are averages of dally figure# rather than of iadday'a only. High# ami lew art far
Friday's data only#
2j Standard end Pool's oomposlte stook yield baaed on Bsdnesday data ooamrted to wekly oloelng
prloee by federal Reserve* Held* i b m are for dates onwnloh pxioe Index reaehedlte high
3/ Averages of dally trading rolaw on the lev Y e * Stook Xxohaage* Yeaz*-end figures are averages at
, daily figures for the ye art
V Bad of month figures for neaber flans of the Sew Y e * Stook Snkaage vhlch oarsy margin aooeesUi
excludes bah noes secured by 0. S. Government ehllgations.
V Wednesdayfiguresfor weekly reporting softer banks* Kxolndes loons for purokesing or carrying
U. s. Government securities* Weekly reporting banks sooonat for about 70 per oeet of loans to
FRASER
others, 7or further detail see Bulletin.

Digitized for


| IXHItlT F.f.rtlj

HOME MORTGAGES:

A M CORPORATE BONOS:

, 1111! 1111111111 > 1111111
1881

1957

Exhibit P
FB\
mortwIK68 2/

Conventional

25-year 30-year gagea ^
1956
1957
, 1958
1959-60
1961-65

- High
-Low
-High
-High
Low

4.68
5.63
5.35
6.24
5.72
5.43

5.76
5.44

1965 - J u n e
July
Aug.
Sept.

5.43
5.43
5.44
5.46

5.44
5.44
5.45
5.46

5.20
6.00
5.55
6.30
5.95
5.80
5.80
5.80
5.80
5.80

1882

1883 j

1884

1888

Part II

Spread beAaa Corporate
tween yielda
Bonds
on conv. &
New**/ Seasoned^/
FHA mort««e.
4'
.47
.47
.15
.23
.37
.25
.36
.36
.35
.34

Spread between
yields on new corporate bonds and
FHA mtgs.1 Seasoned
4/
1 bonds

3.08
4.94
3.65
5.25
4.72
4.12

3.08
• 4.12
3.57
4.61
4.52
4.22

.76
1.58
.88
1.69
1.48
.79

1.03
.05
.73
.39
-.16

4.58
4.61
4.63
4.67

4.46
4.48
4.49
4.52

.86
.83
.82
.79

.12
.13
.14
. .15

y wither mortgage ner bond yields take late aoeetmt Berriolng oeets which are *eh higher f er mortgagee
than bond*. Generally, bonds pay Interest seal—pot ally| mortgages, monthly. Mortgage yields, If
oompvted^aa equiraleat te a senrt^animal Interest iavestmnt, « u t be slightly higher that glvea la
2/ Based oa IHApfleld-effioe opinions about average bid prices la the private secondary market fer mew
home mortgages tor immediate delivery. Separate data available for 25-year snil heglnnlag Jtly 196L—
30-year mortgages with mfoilmn dewnpaymente, weighted by probable TO lame ef transactions. Yields eose
puted by ISA, assuming prepayment period at 12 years for Z 5—year mortgages and 13 years for SO—
year mortgages* Over the period tar -which they oea he compared, the moreemat ef the two mortgage
yield series has hem similar* Dashed lines indicate periods ef adjmatxesat to changes la ooaSraoteal
interest rates,
jy Based oa FH1 field office opinion on typical interest rates (rounded) oa conventionaltfiret mortgages
prevailing in the market areas of insuring office cities. Beginning with April i960, rate relates
only te new-home mortgagees prior to that date, rate related to both aew as well as exlstlag-home .
mortgagee* Dashed line indicates this change in the series,
V TEA mortgage yield data are for 25-year mortgagee through Jane lMlj 30-year mortgages thereafter*
!y See note for Exhibit 0.
FRASER
%/ Moody*a Investor Service. Monthly averages of daily data. SeetihlhltA,

Digitized for


jiiNiiiTr. r*i m|

i i i ITI i n n i i r r r r r r r r r 1.31

MATURITY)
l«EW|

lis

1 EXISTING I

_

U•

LOAN) PRICE/RATIO

I I I I I I I I I I I I I I I I I I I I I I I llll

Exhibit F

im

Aug.
Sept.
Oct,
Nov,
Dec.

mi

Jan.
Feb.
Mar.
Apr.
May
July
Aug.

Part IV

N<
Con- Fees &
tract Charges Maturity
Rate (Per
(Years)
(Per
cent)
cent)
2/

Loan/ Loan
Price aat.
ratio (Thous.)
(Per
cent)

5.77
5.77
5.75
5.75
5.76

.58
.57
,58
.55
.59

24.7
25.0
24.5
24.7
25.2

74.4
74.2
73.2
74.5
74.9

17.8
17.6
17.4
17.4
17.8

5.90
5.93
5.91
5.94
5.92

.53
.55
.52
.57
.56

20.1
19.8
20.0
20.3
20.1

71.4
71.6
71.4
71.4
71.7

13.6
13.4
13.3
13.8
13.7

5.79
5.79
5.72
5.74
5.77
5.76
5.77
5.76

.59
.61
.49
.51
.53
.49
.55
.50

24.7
24.9
24.9
24.9
24.9
24.6
25.0
24.5

74.0
74.0
73.7
73,7
74.4
73.9
75.0
73.8

17.5
17.6
18.5
18.1
18.2
17.5
18.3
18.3

5.95
5.93
5.91
5.89
5.88
5.86
5.86
5.86

.54
.54
.55
.49
.48
.49
,49
.46

19.9
20.3
20.9
20.4
20.3
20.6
20.6
20.4

71.6
72.6
72.7
71.8
71.9
72.1
72.5
72.1

13.6
13.8
14.6
14.0
14.1
14.3
14.5
14.1

(

Exiiitiwt How
Con- Fees &
Loan/ Loan
tract Charges Maturity Price aat.
Bate (Per
(Years) ratio (Thous.)
cent)
(Per
(Per
cent)
2/
cent)

1/ Compiled by Federal Boa t loan Bank Board la oooperation with Federal Deposit Insurance Corporatism,
probability
of—coeiwtiogal
first
are weighted average* bated i r-~
————— -/itopl*
• • t..surrey
- —— —/of—characteristics
—r—
- —— mortgage* originated by major Institutional lender groups, (including mortgage companies/ for purchase
of single family hows. Data exolnde loans fer rsfinaaolog, reconditioning, or modemlsatloa|
oorutrootloa loans to home bwlldsrej and—1m this exhibit—permanent loans which are coupled with
eonst motion loans to owner-bulldere. Data are still in a developmental stage and may re fleet
seasonal Influences which cannot yet be measnmd because the series go baok omly to end of 1962,
Belated series on oonvsntional mortgage rates only, based on unweighted opinions of rsglonalr-offloe
directors ct the Federal Housing Adadnlstrati on, are available somewhat sooner than the results ef
FHLBB-FDIO survey, and are Inola&ed—In the ease of new home mortgage rates—d* Exhibit F, Part# I
2/ Fees and charges expressed as a percentage of the principal mortgage amount—Include lean nnmml salons,
fees, discounts, and other charges which, provide added income to the leader and are paid by the •
borrower. They exclude any closing ooete related solely to transfer of property eemerehlp.




1

IXHIBII O, RATI I

I I I I I I

Exhibit 0 - Part II
Yields on Mew Corporate Bond taeuee Adjusted to an Aaa basis
Am't of Issues Average
of
Included (mil.
yield
issues of dollars)
(per cant)
V

i

*?UY

1965 - Jan'.
Feb.
Mar.
Apr.
Hay
June
July
Aug.
Sept.
Weekly averaea
1965- High
Low

94.0
111.0
157.8
115.0
315.0
100.0
278.0
166.5
288.5

4.42
4.41
4.45
4.46
4.51
4.58
4.61
4.63
4.67
4.71 (8/27)
4.33 (1/29)

Aug.

6
13
20
27
Sept. 3
10
17
24
Oct. 1
8
15

of
w

Am't of issues Average
Included (all.
yield
Of
)
(PW wt),

3
1
1
2
2
2
2
1

80.0
17.0
19.5
50.0
43.5
65.0
120.0
60.0

4.58
4.64
4.67*
4.71
4.69
4.70
4.67
4.64

4

88.0

4.72*

Kotcs
of offering yield* on
u v I I I M I of publicly offered doiporate bonds rated AM. la and ™
A by Moody's Investors Serrioe (except aortal and convertible la sues, offer!*# of natuxul gae pipeline
end foreign ooepanles, and bonds guaranteed by the Federal Govenewnt) iwlghted by Ale of offering, 1
Before averaging, new offerings are adjusted to a mimoslte Aaa basis by deducting from the actual
reeffering yield the excess of the weekly average yield for seasoned beads at the appropriate iatastzyquality group over the composite average for seasoned Aaa-mted bonds (Moody's)T Averages considered
unrepresentative because <* special characteristics of t o offerings lnolaied are denoted by aa asterisk^




H. 14

Exhibit H

Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1965
January
February
March

Corporate
1964

i'

April
May
June
July
August
September

795
746
1,197

y g
1,946

a/1,250

New Can ital
1963

938
700
778

613
594
1,144

fi/803

2,237 .
1,095
l,4<p5

930
904
1,013

S 8

732
746
976

1,242
667
903

869
866
930

812
6$0
1,130

a/950
2/650

' 906
,780
892

w6(?9

sJ 700

',801
529
i,9^

1,051
729
416

E/ 2,621
^ 2,688

2,J%
2,8U
2,578
, 2,27S

2,454
2,665
1,837
2,197

5,345
7,923
10,201

5,118
6,955
9,151

sJ1,000

1,642

1,013
819
1,415

1st
2nd
3rd
4th

2,736
4,789
e/3,295

2,416
4,7#
2,621
3,264

2,351
2,847
2,109
3,246

7,527
e/10,855

7,153
9,775
13^038

5,198
7,307
10,553

1st half
Three quarters
Year

6/943

947
776
810

676
637
795

October
November
December
quarter
quarter
quarter
quarter

State and Local 2/
1^64
1965
1963

2/950

s / 2,550
B/ 5*410

680
708
449

Excluding finance companies^/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

2,547
4*348
«/2,945

Year
e/
2/
y
2/
3/

2,043
4,283
2,482
3,006
11,813

2,284
2,529
1,768
2,854
9,434

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of ssles and consumer finante companies.




J

H. 14
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)

Quarter
or
Month

Gross proceeds for new
capital and refunding 1/
Bonds
Common
Total Publicly Privately ' and
Offered
Offered
Pfd.
stock

Net proceeds for
new capital 1/ 2/
Memo:
Foreign
issues
included

Mfg.

1963 - I
II
III
IV

2,700
3,634
2,436
3,466

1,108
1,389
898
1,319

1,306
1,820
1,251
1,780

287
424
287
367

128
434
109
47

947
591
806
968

1964 - I
II
III
IV

2,548
4,965
2,876
3,568

978
1,321
792
531

1,269
1,755
1,590
2,629

300
1,890
494
408

29
105
94
227

429
723
559
1,061

1965 - I
II
III©/
IV

3,007
5,043
3,697

906
1,864
1,551

1,673
2,259
1,855

429
920
292

243
215
. n.a.

Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

2,295
1,181
1,489
902
748
1,226
1,036
727
1,805

383
470
468
234
183
376
181
30
320

541
563
651
443
453
693
642
645
1,342

1,372
148
370
225
112
156
213
52
143

858
791
1,358
1,233
1,773
2,038
1,379898
1,420

161
187
557
422
694
748
542
369
640

565
450
658
648
630
980
717
438
700

131
155
143
162
449
309
121
91
80

1964

1965 - Jan.
Feb.
Mar.
Apr.
May
June
July £./
Aug. & /
Sept.e/
Oct.
Nov.
Dec.

Public Communi- Other
Utility cations issuers
326
794
285 •
530

236
221
150
118

842
1,241
868
1,629

438
856
642
509

273
1,666
59
135

1,275
1,492
1,361
1,559

1,072
1,679
1,003

541
609
760

91
255
247

1,034
2,246
1,285

34
36
35
24
27
44
82
29
116

186
206
332
150
176
234
250
203
607

151
441
264
207
138
296
297
40
172

1,379
27
260
23
16
19
82
21
32

521
421
550
432
349
580
323
405
831

49
51
143
33
49
134
27
59

385
192
494
540
698
441
41*
286
300

97
215
229
176
248
184
294
296
260

21
44
26
15
143
98
102
25
120

292
295
448
422
602
1,223
505
210
570

|>/ Preliminary, e/ Estimated by Federal Reserve
1/ Gross proceeds exceed net proceeds by the cost of flotation.
If For total see Exhibit H; other issuers are extractive, railroad & other transportation,
real estate & finance, & commercial & other. Source; Securities & Exchange Commission




Exhibit J
Other Security Offerings
(In millions of dollars)

1965
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - Sept.

Gross Long-term 1/
Foreign Government z/
1964
1965
1963

218
——

38
73
—

91
&/ 15
& / 74
e/ 20

e/529

Tear

4
82
69
30
75
26
20
13
7
180
72
58

232
133
76
57
114
11
63
83

326

769

636

771

—.

Federal Agency 3/
1963
1964

129
185
325

—

——

775
V
—
2/ 239
e/ 150

—*

148

—

—

186

— •

f

—

—

275
260
160

459
—

—

—

510

174
200

—

2

—

—

e/1,803

695

793

1,205

1,167

New she>rt-term 4/
Federal Agency 3/
State and Local Government 5/
January
February
March
April
May
June
July
August
September
October
November
December

238
91
-458
647
204
-82
119
2/ 409
n. a.

103
236
-407
442
81
-80
-9
127
176
7
-15
-208

75
272
-367
589
-30
-10
62
208
-173
259
146
-339

Jan.-Sept.

ri.a.

669

626

453

692

Year

-137
-174
117
-11
509
237
132
206
E/ 178

1,037 '

-308
-336
23
97
183
239
-333
167
1
525
113
-3

J

-332
-255
-161
202
195
319
415
326
258
123
-102
551

-267

967

368

1,539

from those in Exhibit H in that refunding issues, as well as new capital issues, are
included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the U.S. by foreign governments and their political
subdivisions and international organizations. Source* Securities and Exchange Commission,
j / Issues not guaranteed by the U.S. Government. Source* Long-term, Securities & Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve. j^/These data differ from those in
Exhibit H and above in that they represent new offerings less retirements, whether from
the proceeds or refunding issues or from other funds. Data include only issues with
original maturity of one year or less. ^/Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year.
Source* Bond and Buyer & Fed.Res'




H. 14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Total

1964 - Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.
Apr.
May
J une
i
July
Aug.
Sept.

Cornonite
Bonds
Convertible
(other than
convertibles)
bonds

376
187

269
108

230
139
217
513
307
928
801
477
299
530

200
115
131
233
210
560
343
455
211
530

--

Stocks

25

81
79

--

--

State
and
local
governments

15
86
---

315
138
26

%f

15
502
15

558
419
226
541
419
446
395
411
492
377
655
312
563

30

280
97
53
320
22
62

Other

--

235
130
19
260
40
340
20
50
170

Large Individual Issues Offered Oct. 1 through 15

Issuer

CfTPmit#
Rochester Tel. Corp.
Indiana Bell Tel. Co.
Kansas City Pwr. & Lt. Co
Columbia Gas System
N Bancorpora tion
State & Local Government
Met. Seattle, Wa-sh.

Type 2/

Amount
(millions
of
dollars)

Maturity

Coupon
rite or
n*t interest cost

Com. stk.
Deb.
1st mtg. bds.
Deb.
Deb.

16.0
25. 0
15.0
40.0
30.0

2005
1995
1990
1990

4-3/4
4-3/4
4-7/8
4-3/4

Rev.-Ut.

10.0

1973-2004

3.76

Offering
vield

4.64
4.65
4.88
4.78
3.15-3 75

Rating

Aaa
Aaa
A
--

Aa

Other
---Rights offering. n.a.--Not available.
1/ Includes corporate and other security offerings of $15 million and over; State and local
government security offerings of $10 million and over.
2/ includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issues by Federal Agencies.
3/ In the case of State and local government securities, G.O. denotes general obligations;
Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut ,
revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds
secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by
. cfor
-• FRASER
payments .
Digitized



H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for Mew Capital
(Other than U.S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)

196.4 - Sept. 30
Oct. 30
Nov. 30
Dec. 31
1965 - Jan. .29
Feb. 26
Mar. 31
Apr. 30
May
28
June 30
July 30
Aug. 31
Sept. 30

During month following
date shown
State and
Corporate
Other % )
local govt.
-186
500
--254
90
360
25
105
306
215
-242
169
-407
316 .
267
212
60
852
411
25
765
328
70
363
397
20
248
193
312
404
206
269
15

Corporate

Subsequent to
date ahown
State and
local aovt.

186
130
105
253
504
792
852
923
410
340
636
303

1

626
549
563
435
382
599
373
635
474
524
352
450
331

Other y
--

25
215
--

60
25
70
20
—--

15

Forthcoming Large Offerings as of Oct, 15

Issuer

ftSBfllifci

Canada Dry Corp.
Panhandle Eastern P. L. Co.
Jersey Central Pwr. & Lt. Co.
*United Merchants and Manf.Inc
West Penn. Power Co.
Macy Credit Corp.
Great Western Financial Corp.
General Tel. Co. of Calif.
State and Local Government
Alabama Highway Auth.
Dallas, Texas
State of Maryland
San Diego Unif. Port Di£t,Cal.
Wisconsin State Agencies
Building Corp.




Type

Amount
(millions
of
dollars)

Approximate date of
offering

Deb.
Deb.
1st mtg. bds.
Conv. sub. deb.
1st mtg. bds.
Deb.
Deb.
S.F. deb.

20.0
40.0
20.0
40.0
20.0
25.0
22.0
30.0

Oct. 18
Oct. 19
Oct. 26
Oct. 28
Nov. 23
Indefinite
Indefinite
Indefinite

Rev.-S.T.
G.O,
G.O.
Rev.-Q.-Ut.

20.0
16.0
43.6
10.9

Oct.
Oct.
Oct.
Oct.

Rev.-Rent

38 ^ 9

Oct. 19

18
18
19
19

L-2
Forthcoming Large Offerings as of Oct. 15 (Cont'd)

Issuer

State and Local Government
(Cont *d)
Va. State Highway Comm.
New York City, N. Y.
New York State Housing Fin. Agency
*Los Angeles Dept. of Wtr. & Pwr., Cal.
Illinois State Bldg. Auth.
Minneapolis, Minn.
Port of New Orleans, La.
Los Angeles, Calif.
Dade County, Fla.
Austin, Texas

Type

Rev.-Q.-Ut.
G.O.
Rev.-Rent.
Rev.-Qi-Ut.
Rev.-Rent
G.O.
Rev.-Q.-Ut.
Rev.-Q.-Ut.
G.O.
Rev.-Ut.

Amount
(millions
of
dollars)

35.p
105.8
84.7
24.0
21.3
10.0

20.0

16.5
46.0
14.0

Approximate date of
Offering

Oct. 20
Oct. 20
Oct. 20
Oct. 20
Oct. 26
Nov. 4
Dec. 9
Nov. 16
Indefinite
Indefinite

Other
Republic of Finland
*United Mexican States

Bonds
Bonds

15.0

20.0

Oct. 19
Oct. 27

^--Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and local government
issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction arid Development
issues and non-guaranteed issues of Federal Agencies.
Note:--Deletions for reasons other than sale of issue; None.




V

H. 14

^l

exhibit M

Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

i Sale Date
£

Amount
(millions
of
dollars)

\

Public Offerings

Issuer and Description of Issue

A.

Sold August 1 through October

15

?

8/24

50.0

Province of Ontario, Canada--4-3/4% debenture,
maturing 1990, reoffered to yield 4.85%.

1

9/16

20.0

European Investment Bank--6% bonds, maturing 1985,
reoffered to yield 6.04%.***

i

,1
y

B.

Prospective Offerings

10/19

15.0

Republic of Finland - bonds

*10/27

20.0

United Mexican States - bonds

%
-- Included in table for first time.
**
-- issue sold to investors outside U. S.
:,•** -- Issues subject to interest equalization tax; price to U. S. citizens was therefore
placed 108.33 as compared to price of 99.50 to other investors.




'

"ti-

M-2
Part II:

1
Data reported
1

8/11

•

Private Placement--Reported August 1 through October 15

Amount
(millions
of
dollars)

8.0

Issuer and Description of Issue

Celanese Mexicana S. F.--7-1/4% sinking fund bonds,
due 1977--no information available on takedown.

8/30

25.0

Imperial Chemical Corporation Ltd.--6.82% notes, due
1971-85--no information available on takedown.

8/30

10.0

Dominion Rubber Company Ltd.--5-7/8% notes, due 1985-no information available on takedown.

9/9

40.0

Skeena Kraft, Ltd.--5-3/8% first mortgage and collateral
trust bonds, maturing 1985--no information available on
takedown.

9/8

50.0

Bell Telephone Co. of Canada--4.85% first mortgage
bonds, due 1995--no information available on takedown.

9/16

135.0

9/16

25.0

Note:

Queensland Aluminium Securities Company-notes maturing
1968-82--no information available on takedown.
The Alberta Government Telephone Commission--4-3/4%
sinking fund debenture, maturing 1990--no information
available on takedown.

For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibits I and J. There is no simple relationship
between the data shown in the Exhibit and that shown in Exhibits I and J because the
latter includes privately placed securities in the period in which funds are actually
tak&ndown but only in the amount of takedown while the placements shown in this exhibit are included when reported, frequently with little or no information concerning timing of takedowns. Full or partial takedowns may take place both prior
and subsequent to the date a placement is reported.